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A more sustainable future... Today!

TSX-V: TMG | Corporate Presentation | December 2014

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Thermal Energy is a…

Global provider of energy efficiency solutions to the ICI sectors

We save our customers money & improve their bottom lines by…

Reducing their fuel use and cutting carbon emissions

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Highlights

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Large, fast growing global market with

strong fundamentals

Proprietary & proven energy efficiency

solutions provide high ROI

Strong track record of growth

4 Growing global footprint

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North American market

>$90B1

>$450B1

Global investment in energy efficiency outpaced renewable energy in 2013

Global industrial market

Source: Bloomberg New Energy Finance, October 2014 1 Calculations based on data from U.S. Dept. of Energy, 2012 Energy Outlook

Large, fast-growing market

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56% growth in global energy consumption expected 2010 - 20401

60% of all energy used is lost due to inefficiency2

1 U.S. EIA, International Energy Outlook 2013; 2 Lawrence Livermore National Laboratory

Energy efficiency represents significant cost reduction opportunities

Investment more than offset by energy savings

Strong market fundamentals

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Proprietary, proven solutions

FLU-ACE®

Direct contact condensing heat recovery

GEM® Condensate return systems (steam trap)

~80% We can recover of energy lost in typical boiler plant and steam system operations High ROI with short, compelling payback 16 year track record

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FLU-ACE® heat recovery

Recovery of waste heat from process exhaust

Return hot water for use in production or heating

1 system per location – sells for $100k to millions each

90% 10-30% 2-5 YEARS Recovery rate Reduction in

energy costs Payback period

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GEM® condensate return system

Improved efficiency vs. traditional mechanical steam traps

No moving parts – never needs replacing

100’s to 1,000’s of traps per location and sell for $500 to $1,000 per trap

10-30% 1-2 year Reduction in energy costs

Payback period

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Mechanical trap

GEM steam trap

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Proven across a number of sectors

PHARMACEUTICAL HOSPITALS FOOD AND

BEVERAGE

PULP AND PAPER CHEMICAL AND

PETROCHEMICAL

AND MANY MORE

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Recent projects

$415K heat recovery order from a packaged foods business

$1M heat recovery & GEM® project from a major hospital, resulting in annual savings of $390K.

$3.4M heat recovery and GEM® orders involving 9 sites from a leading Fortune 500 food & beverage company.

$281K GEM® project from a diversified healthcare/pharma company, producing annual savings of $275K.

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Revenue

5-year CAGR = 27%

Fiscal 2014:

Revenue of $13.2M

Heat recovery system sales +77%

GEM sales +37%

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Revenue excluding Mega Projects

5-year CAGR excluding Mega Projects = 20%

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($000’s) FY 2014 FY 2013 Change

Gross profit 6,974 4,977 +1,997

Net income (loss) 634 (2,849) +3,483

Operating cash flow 1,349 (1,384) +2,733

FY 2014 profitability

Record high profitability and cash flow

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($000’s) Q1 2015 Q1 2014 Change

Revenue

1,171 1,522 -351

Gross profit 703 970 -267

Net income (loss) (668) (359) -309

Operating cash flow (473) (106) -367

Q1 2015 financial review

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Immediate growth opportunities

Continue to develop corporate accounts & repeat orders

Cross-selling

Additional locations

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

16 customers

with >1,600

sites globally

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

16 customers

with >1,600

sites globally

Pulp & Paper Pharmaceutical Chemical Food & Bev.

Plus tires, plastics, textiles and many more

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Continue growing sales & distribution capabilities in key markets of North America, Europe & the Middle East

Foothold established but key markets still largely untouched

Immediate growth opportunities

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Fall 2013: Retained 2 professional sales recruitment agencies

Hired 7 sales & marketing staff over the last 12 months (net increase of 3)

Looking to hire 2 more sales people (Texas and Alberta)

June 2014: Engaged a global sales and sales management training organization to provide on-going training, coaching and support

Strengthening our sales team

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Grow in existing key markets

Enter new markets

Introduce new products & services

Grow recurring revenue streams

Future growth

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Organic growth

and/or

accretive acquisitions

Organic growth

and/or

accretive acquisitions

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Summary

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Large, fast-growing global market

Proprietary & proven solutions provide high ROI

Strong track record of growth

Growing global footprint

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This presentation includes “forward-looking information”. For example, statements about the opportunities for repeat business, additional orders, entry into new markets and growth of recurring revenue streams; order backlog; introduction of new products and services and growth opportunities and strategies are all forward looking information. Such forward looking information reflects Thermal Energy International’s (“TEI”) current expectations with respect to future events and are based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this presentation. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this presentation and TEI does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.

Forward-looking statements

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